Why Mortgage Rates Are So Low Right Now

Why are interest rates so low right now? Global economics have made American real estate a great haven for investments, so rates have dropped.

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It's not very nice to profit from your neighbors’ troubles. Sometimes, though, there's simply nothing you can do to stop it.

At the beginning of the summer, as I'm sure you have heard, the UK voted to leave the EU. This became known as "Brexit," and it has created heaps of uncertainty and worry for our neighbors across the Atlantic.

Here in the U.S., though, Brexit has been nothing but good news for the real estate market. Because of Brexit, investors all over the world wanted a safer place to invest, and this pushed already low mortgage rates down even further to almost unseen lows.

In fact, we are now in the middle of the second-longest run of cheap mortgage rates in history. The 30-year fixed rate mortgage is 3.46%; this is only a few points above its all-time low of 3.31%.

What does this mean for you?

First, if you are looking to buy a home, now is an unusually good time to do so because these low rates mean you will be paying less. As an example, taking out a 30-year, $250,000 mortgage today versus a year ago (when the rate was 3.91%) would mean that you would save more than $25,000 over the lifetime of the loan.

The other way to look at it is that at today’s rates, you can afford a more luxurious home without paying more. For example, if you were to take out a 30-year mortgage, you could now afford $15,000 more for a home than a year ago while keeping the same monthly payments.

Clearly, this is a great opportunity.

Here in the U.S., Brexit has been nothing but good news for mortgage rates.

Now, if you are looking to sell rather than buy, these low rates also benefit you big time. The more the mortgage rates drop, the more buyers there are, and the greater the demand is for homes.

This healthy demand keeps up the price of your home and ensures your home will get sold quickly. Not surprisingly, pending home sales are up by 1.3% this summer and are now at the second-highest level in over a decade.

As you can imagine, these ultra-low mortgage rates won’t last forever and will rise sooner or later.

If you are looking to take advantage of this unique situation while it lasts, give me a call or send me an email. I’m always here to help.

Should You Buy a Mansfield Home Without an Inspection?

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Today, we’ll talk about buying a home with a professional inspection. What should you do in this particular situation in Mansfield?

As a local real estate expert, I always recommend a home inspection. Never buy a home without one! There are a lot of things inside a home an inspector can identity that you cannot. A private contractor will review all the systems in a home, including plumbing and electricity, in addition to checking appliances. There are so many aspects an inspector takes into account when they go through your property.

When you walk through your own home, you won’t be able to detect any problems. Some buyers have more expertise in building and repairing a home. However, the inspector you hire will definitely have that expertise, so you can fix repairs and add upgrades before you even accept an offer. They will always find more than you will just by looking. This is a serious and wise investment that I recommend to anyone selling their home.

I always build in an option period for my buyers. During this period, and inspection will happen along with any negotiations for potential repairs, and the contract can be terminated if necessary. I like to use a seven to ten day period, but ultimately, it’s for your protection. You want to be clear about what you want in the beginning, so there are no surprises later on.

If you’re thinking about buying or selling a home in the surrounding area, give me a call or send me an email at your earliest convenience. I’d be happy to help you with any questions you might have!

How Important Is the Age of a Home When Buying?

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Today, we'll talk about the importance of the age of your home when buying. You may not want an older home because you are looking for a newer neighborhood, or you may prefer an older neighborhood with mature trees. Older homes also have different character than newer homes.

First, you need to know that the age of the home doesn't affect its appreciation. You may find a neighborhood that is depreciating rapidly, but those neighborhoods are far and few between. 

Next, any home you buy, you can upgrade. You may need to make changes for energy efficiency, layout, or other updates. I have seen older homes updated with new windows or roofs to make them more energy efficient. Sometimes making these upgrades yourself makes your property more energy efficient than new construction homes.

Regardless of the age of the home, you need to get an inspection. The inspector will be able to tell you about all the idiosyncrasies in the home so you have a clear idea of what's going on with the house from the foundation to the roof. 

My appeal to you is to go with what suits your personality. Don't let the fact that a home is 50 years old keep you from buying it. The neighborhood should play a bigger factor in your decision than the age of the home.

If you have any questions, give us a call or send us an email. We look forward to hearing from you!

How to Build Wealth from Real Estate

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Real estate is a fantastic way to build wealth. People have been doing it forever, and real estate investments are actually some of the best long-term investments that you can make.

One of the first steps you need to take is to own the home you live in. Once you pay off your mortgage, you'll be in great position to invest in another property. Interest rates are incredibly low right now, so this would be a very good time to invest in a home. 

If you're worried about being in debt because of a new home purchase, I wouldn't think about it too much. Mortgage debt is the only good debt that you can have. Homes do appreciate, so you can bank on that if you're worried about stepping too deep into mortgage debt. 

Equity can be built pretty quickly after you have purchased a home. It can take five or maybe six years, but after this you can ride a nice wave of appreciation.

If you don't own a home, I would contact a lender and forge out a path for home-ownership. It's an incredible way to stabilize your family's financial future. 

My partner, Trever Kerr, is an excellent lender in the area. You can call him at (972) 822-7408. He is extremely consultative, and he can show you exactly what you need to do in order to purchase a home. 

If you own a home right now, I invite you to give me a call to talk about investing in more real estate. Interest rates are low right now, so waiting to buy will cut into your purchasing power significantly.

Please don't hesitate to contact me in regard to Mansfield real estate. I look forward to speaking with you!

What's Happening with Mansfield's Inventory Levels?

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Lately, I've found myself explaining real estate inventory levels to many people. Our market is crazy right now, and it seems like there are 10 buyers for each house on the market. Guess what? That's because there is! Right now, there is a supply and demand problem that primarily affects buyers. Essentially, that problem exists because we have not been fulfilling our industry inventory levels since 2008.  

Before 2008, builders were putting up new homes constantly. Whenever you walked down a street, it seemed like there was a new subdivision. Builders were also putting up spec homes so that people who were unwilling to wait the six to eight months still had inventory to look at. For most of those buyers, the financing has not come around for them to do that anymore. Plus, many builders are still a little gun-shy, as they were stuck with extra inventory back in 2008. 

On top of all of that, we have an entire generation of millennials entering the market and looking for starter homes. Our inventory just started approaching industry levels this year, and I don't think the supply and demand issue will be neutral for another three to five years. 

It's different all across the country. In the Northeast, they still aren't building enough for demand. The West is barely getting there. Here in the South, we're doing better than anybody else. We're supplying about 30% more than demand. However, we still have a lot of catching up to do, and while we're catching up, more and more buyers are coming onto the market.

If you have any further questions, please feel free to reach out to me. If you're thinking of buying or selling a home, call or email me today for a free consultation.

What's the First Move Before Buying a Home?

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Welcome back. Today we are asking one of the most common questions we get asked, "What is the first step in the real estate process in Mansfield?"

My answer is almost always the same. Unless you are paying cash, call a lender. It's a really important step for us to know how we can help you and what you can afford. There are a lot of steps involved in the process and the more you can anticipate, the easier and more stress-free it will be.

Even if you're not a first-time buyer, finding a good lender is still essential to your transaction. They will let you know exactly what you can afford and what type of home you can purchase. 

Lending guidelines are constantly changing, so it's important you are working with someone who is always up to date on the latest changes. If you are looking for a good lender, we always recommend asking a good agent. If they are a good agent, they will have a preferred lending partner.
 

We have a lender that we refer all our clients to, and that is Trevor Kerr at Gateway Mortgage, who you can contact at (972)-822-7408. There is no one else I would refer my clients to. 

If you have any questions for us, or are looking to buy or sell a home in Mansfield, give us a call or send us an email! We would love to hear from you!

The Pros and Cons of Building a New Home

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There are a lot of benefits to building a new home in Mansfield, especially right now when we have low inventory. 

Instead of waiting around to find the perfect home, you could build your own custom dream home! However, it does take 4-8 months to build a home, so if you're in a hurry, it may not be your ideal option. 

When you buy a pre-owned home, it is a lot more cost-effective because you get a lot more home in terms of cost per sq. ft. New homes are often more expensive, but you have total control over the price when you're picking materials and amenities.

However, sometimes with resale properties, the previous owners have already customized the home and barred the expense, so you have to pay nothing for those upgrades!

If you're thinking of building a new home, I would advise you to use a Realtor when you're working with a builder, and I would be glad to represent you.

As always, if you have any questions or concerns, please don't hesitate to contact me in regards to Mansfield real estate.

Have You Been Thinking of Buying a Better Home?

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There comes a point in time when people need to move into bigger, better homes. Whether it's because of a growing family or simply a wish to invest in a better property, people do this all of the time. 

Usually move up buyers have to find a home to move into before they can sell, and vice versa, so sometimes the transactions can get dicey. However, I have a lot of experience helping move up buyers, and there are a few things that can be done to have a seamless transaction.

My advice to you right now is to focus on the purchase because inventory is low right now, so selling your home will be the easy part.

In a normal market, you could use contingencies to sell your home, but right now, because of the low inventory, this may not work.

Another option is to build a new home, so then you can have a slow move in and have plenty of time to sell your home.

If you're interested in moving up, please contact me and ask about my move up discount. I'd love to help you out!

What Are the Hottest Neighborhoods in Mansfield?

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Today I wanted to discuss some of the more popular neighborhoods in Mansfield. Now is a great time to buy, so these are some of the neighborhoods that you might want to investigate:

• The Trails
• Walnut Creek Country Club
• Dover Heights

 

A majority of the new building is occurring in the Lake Ridge High School District, but there are some other wonderful new communities forming in Garden Heights, Bower Ranch, Las Brisas, and the D.R. Horton neighborhood. I think a majority of the growth in Mansfield will be happening in the southeast corner for the near future.

In the future, I expect growth will happen more out to the west of town. The city is really beginning to manage development out in those areas. 

Overall, Mansfield is becoming a hot spot to live, so if you plan on buying in the near future, please don't hesitate to contact me and I can help you to find a great place to settle into.

I look forward to speaking with you!